Centre may raise allocation for Odisha to Rs 20 cr under NMFP

The Union ministry of food processing industry (MoFPI) is likely to enhance allocation for Odisha to Rs 20 crore in 2014-15, up from Rs nine crore presently, under the National Mission on Food Processing (NMFP).

“The MoFPI has agreed in principle to raise Odisha's allocation under NMFP  to Rs 20 crore from this fiscal itself. While the Centre will provide 75 per cent funding, the remaining 25 per cent counterpart funding will be borne by us”, said a top state government official.

The NMFP scheme is aimed at maintaining the requisite synergy between agriculture plans of states and development of food processing sector, which in turn would help in increase in farm productivity, thereby increasing  farmers' income also.

This would also help in ensuring efficient supply chain by bridging infrastructural  and institutional gaps. A National Food Processing Development Council (NFPDC) has been set up under the chairmanship of Union minister for food processing with representatives from the states.

The state government has recommended to the Centre a proposal by its PSU Odisha Industrial Infrastructure Development Corporation (Idco) to set up a sea food park at Deras in Khurda district.

The sea food park has been planned on an area of 100 acres at an estimated cost of Rs 116.43 crore, inclusive of the land cost. Land cost has been considered at the rate of Rs five lakh per acre. The sea food park will be set up under the Mega Food Park Scheme of the Centre and is expected to fulfill the long standing demands of exporters and other stakeholders.

The state MSME (micro, small & medium enterprises) department has agreed to provide all fiscal incentives to the sea food park developer under Odisha Food Processing Policy, 2013.

Within the sea food park project, basic enabling infrastructure will cost Rs 36.60 crore while core processing facilities including buildings, plant & machinery and miscellaneous fixed assets are estimated to cost Rs 49.44 crore.

The project will be financed by a mix of equity contribution from the promoters, bank finance and grant assistance from MoFPI and Odisha government.